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Alter's Home Center (AHC) sells renovation and remodeling products to both contractors and individual home owners. One of the services AHC offers is delivery of
Alter's Home Center (AHC) sells renovation and remodeling products to both contractors and individual home owners. One of the services AHC offers is delivery of the purchased products to the customel'swork site. Because not all customers take advantage of the delivery service option. ACH adds 10 percent to the cost of the products purchased to cover the delivery cost. A business intern spent the summerat ACH - The Intern's. assignment was to analyze the dellvery sevice and recommend a better way to charge customers for-using it. The intern. Who had studied activity-based costing. dentified the following actlvitles and the data related to them:- The intem-selected two customers, who were frequent customers, to use as an illustration of the system: Wagner Remodeling and Burlington Contractors. The intern collected the followno information on these two-customers for the most recent six months: Requlred: 0. Whatwould the delwery charge for each customer be tindel the current policy of 10 percent of order value? b. What would the activity-based-costing system estimate as the cost of delivering to each customer? 8 Answeris complete but not entirely correct. Complete this question by entering your answers in the tabs below. What would the activity-based costing system estimate as the cost of delivering to each customer? Nete: Do not round intermediate caleulations. Round your final answers to nearest whole idollar
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